Since February 1996, the Federal Open Market Committee (FOMC) has changed the intended federal funds rate only once, raising it a modest 25 basis points at this year’s March meeting. The rate’s extended stability largely reflects the combination of low inflation and robust economic growth of the mid-1990s. This outcome is the product of a consistent strategy of maintaining a low-inflation environment, an objective underlying policy decisions since the early 1980s.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-11, pp. 02-04, 11.01.1997.